Border effects in the enlarged EU area: evidence from imports to accession countries

By looking at imports of Eastern European countries, we provide novel insights on the importance and magnitude of border effects and on how they are linked with technical barriers to trade. All Central Eastern European Countries (CEECs) traded with themselves more than with other countries. We grouped products into three categories; depending on the importance of applicaple technical barriers. Our results show border effects are the largest for products, where we expect to have the most important technical barriers. We assess if border effects changed over the transition period and we find that for products where technical barriers are less important the magnitude of border effects was declining at the end of the 90s.